07/26/2016
Who is your next "board president"?!
As a business owner and expert on long term bugeting, this election season is nothing short of startling. Without taking sides or pushing an agenda, let's look at this in terms of a BOD and their Reserve Management Plan. I'll let you come to your own conclusions...
Scenario: The HOA has approved projects that are considered non-essential over the next 2 years totaling $350,000. A $100,000 roof replacement is imminent within the next 3 years. The HOA does not have the roof funds now and projections require a significant increase in dues in order to fund this project as well as the other, non-essential projects.
President A: Will fund all the non-essential projects, promise roof replacement and also sign on to build a pool, clubhouse, dog park, skate park and resurface the roads. Then he/she promises the members that their REGULAR dues won't go up a single cent and the members who "can't pay their dues", AND their visitors, are going to get free gym memberships until they can pay their dues, at which time, they lose their free gym membership.
President B: Will fund all the non-essential projects except for the one President A really likes, promises roof replacement and also signs on to build a pool (no clubhouse), dog park, skate park and REBUILD the roads. Promises to "go after" members who are delinquent on payments, disallow homeowner's visitors from using their amenities and promises your dues will magically go DOWN 30%.
President C: Will cancel the non-essential projects, REQUIRES that the budget allows for roof replacement, does not sign on for other unnecessary or superfluos projects unless members decide for themselves to fund them. In addition, he/she will allow homeowner's visitors to use the amenities as long as they follow the rules and respect their property. Promises to use the SURPLUS funds in the best way to protect property values and keep the member's rates at a nominal increase sufficient to offset annual inflation which alleviates the usurious increase going forward.
Who will you endorse as your next board president?